ING Luxembourg has recorded an underlying net result of €116 million after taxes for the year 2019.
Fuelled by a new record income level of €321 million (up 2%), ING Luxembourg posted an underlying net result of EUR 116 million (up 1%) after paying taxes in the amount of €37 million. Cost management kept the cost-income ratio at a healthy 51% and the bank's solvency remained strong at 26%, well above the regulatory minimum.
ING’s strategy to deliver a differentiating customer experience materialised in a continued increase in primary bank clients: 44% of clients chose ING as their main bank. ING’s clients were also more than willing to recommend ING to their family and friends as demonstrated by the strong Net Promoter Score (NPS®) results in 2019: +40 for Private Banking, +29 for Wholesale Banking and +29 for Retail Banking clients.
2019 was also marked by an internal change in the delivery organisation: the traditional setup product development-marketing-IT was supplanted by an agile organisation in multidisciplinary, flexible teams that make it possible to respond more quickly to customer feedback to improve the customer experience.
In terms of digitisation, more than 80 percent of ING's customer interactions were through mobile devices. Over a third of customers interacted with the bank through a mobile device. Digitisation is also increasingly an integral part of the Wholesale Banking client service, which saw growth in the number of clients using the ING virtual cash management.
The network of Retail Banking branches remained unchanged, with sixteen branches across the Grand Duchy serving clients, supported by a central Contact Centre. The financial results in 2019 were good: despite a very low interest rate environment, the Retail Banking activity delivered higher income than in 2018 driven mainly by the growth of the mortgage portfolio (+13%).
In 2019, ING also reviewed the Know Your Customer (KYC) documentation of 12% of the client portfolio, launched the Customer Experience Day and actively sought feedback from its clients through special sessions on specific customer journeys and through NPS®.
Moreover, ING Solutions Investment Management (ISIM), the Luxembourg management company of ING created in 2014, reached a record €12 billion in assets under management last year. It currently manages out of Luxembourg funds that are distributed in five European countries.
Continuing the trend of the past few years, Wholesale Banking posted an excellent performance again in 2019. The rise in results is attributed to the development of commercial relations with Private Equity firms, regulated and non-regulated funds, as well as real estate companies.
Lending activity was driven by Capital Call Financing granted to local investment funds: a bridge lending facility developed in Luxembourg in collaboration with other ING entities, illustrating the capabilities that a group like ING can offer to local actors.
Last but not least, the quality of service and the competitiveness of ING staff resulted in a jump of 10 points in the recommendation rate of the bank's Wholesale Banking clients (NPS® 2019 at +29).
Colette Dierick, CEO of ING Luxembourg, commented: “2019 was an intense year with a difficult mix of low interest rates and a review of our business risk appetite. Yet we achieved solid commercial and financial results with a three-percent growth in primary bank clients and a two-percent growth in income". She added: "The world in 2020 already looks completely different than 2019. In these uncertain times, we are more than ever committed to play our vital role in the local economy with digital channels that ensure close contact and with our participation in the programme of the Luxembourg government!”
